WSR 16-22-081
PROPOSED RULES
DEPARTMENT OF REVENUE
[Filed November 2, 2016, 8:06 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 16-18-076.
Title of Rule and Other Identifying Information: WAC 458-40-540 Forest land values and 458-40-660 Timber excise tax—Stumpage value tables—Stumpage value adjustments.
Hearing Location(s): Conference Center Room 114A, 6400 Linderson Way S.W., Tumwater, WA (copies of draft rules are available for viewing and printing on our web site at dor.wa.gov), on December 6, 2016, at 1:00 p.m. Call-in option can be provided upon request no later than three days before the hearing date.
Date of Intended Adoption: December 9, 2016.
Submit Written Comments to: Danitza M. Casselman, Department of Revenue, P.O. Box 47453, Olympia, WA 98504-7453, e-mail danitzac@dor.wa.gov, fax (360) 534-1606, by December 9, 2016.
Assistance for Persons with Disabilities: Contact Julie King, (360) 704-5717, or Renee Cosare, (360) 725-7514, no later than ten days before the hearing date. For hearing impaired please contact us via the Washington relay operator at (800) 833-6384.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: RCW 84.33.091 requires the department to revise the stumpage value tables every six months. The department establishes stumpage value tables to apprise timber harvesters of the timber values used to calculate the timber excise tax. The values in the proposed rule (WAC 458-40-660) will apply to the first half of 2016.
Further, RCW 84.33.140 requires that forest land values be adjusted annually by a statutory formula contained in RCW 84.33.140(3). The department anticipates amending the forest land values rule (WAC 458-40-540) to adjust the table of forest land values in Washington as required by statute. County assessors will use these published land values for property tax purposes in 2016.
Reasons Supporting Proposal: Required by statutes and values needed to calculate timber excise and property taxes.
Statutory Authority for Adoption: RCW 82.32.300, 82.01.060(2), and 84.33.096.
Statute Being Implemented: RCW 84.33.091.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of revenue, governmental.
Name of Agency Personnel Responsible for Drafting: Danitza M. Casselman, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 534-1583; Implementation and Enforcement: Stuart Thronson, 1025 Union Avenue S.E., Suite #500, Olympia, WA, (360) 534-1300.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic statement has not been prepared as the proposed rules do not impose more than a minor cost on small businesses. Only large businesses are statutorily required to utilize the values contained in the rules, while small businesses have other statutory authority for their tax reporting obligations.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Danitza M. Casselman, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 534-1583, fax (360) 534-1606, e-mail danitzac@dor.wa.gov. The proposed rule is a significant legislative rule as defined by RCW 34.05.328.
November 2, 2016
Kevin Dixon
Rules Coordinator
AMENDATORY SECTION (Amending WSR 16-01-069, filed 12/14/15, effective 1/1/16)
WAC 458-40-540 Forest land values—((2016)) 2017.
The forest land values, per acre, for each grade of forest land for the ((2016)) 2017 assessment year are determined to be as follows:
LAND
GRADE
OPERABILITY
CLASS
((2016)) 2017
VALUES PER ACRE
1
1
2
3
4
$((203)) 209
((201)) 207
((188)) 193
((137)) 141
2
1
2
3
4
((172)) 177
((166)) 171
((159)) 164
((113)) 116
3
1
2
3
4
((133)) 137
((129)) 133
((128)) 132
((99)) 102
4
1
2
3
4
((103)) 106
((100)) 103
((99)) 102
((75)) 77
5
1
2
3
4
((75)) 77
((66)) 68
((65)) 67
((46)) 47
6
1
2
3
4
((38)) 39
((36)) 37
((36)) 37
((34)) 35
7
1
2
3
4
17
17
16
16
8
1
1
AMENDATORY SECTION (Amending WSR 16-14-035, filed 6/28/16, effective 7/1/16)
WAC 458-40-660 Timber excise tax—Stumpage value tables—Stumpage value adjustments.
(1) Introduction. This rule provides stumpage value tables and stumpage value adjustments used to calculate the amount of a harvester's timber excise tax.
(2) Stumpage value tables. The following stumpage value tables are used to calculate the taxable value of stumpage harvested from ((July)) January 1 through ((December 31, 2016)) June 30, 2017:
Washington State Department of Revenue
STUMPAGE VALUE TABLE
((July)) January 1 through ((December 31, 2016)) June 30, 2017
Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1)
Starting July 1, 2012, there are no separate
Quality Codes per Species Code.
Species
Name
Species Code
SVA (Stumpage Value Area)
Haul Zone
1
2
3
4
5
((Douglas-fir(2)
DF
1
$369
$362
$355
$348
$341
 
2
388
381
374
367
360
 
3
444
437
430
423
416
 
4
474
467
460
453
446
 
5
373
366
359
352
345
 
6
299
292
285
278
271
Western Hemlock and
Other Conifer(3)
WH
1
243
236
229
222
215
 
2
262
255
248
241
234
 
3
260
253
246
239
232
 
4
248
241
234
227
220
 
5
243
236
229
222
215
 
6
243
236
229
222
215
Western Redcedar(4)
RC
1-5
1048
1041
1034
1027
1020
 
6
887
880
873
866
859
Ponderosa Pine(5)
PP
1-6
215
208
201
194
187
Red Alder
RA
1-5
468
461
454
447
440
Black Cottonwood
BC
1-5
86
79
72
65
58
Other Hardwood
OH
1-5
301
294
287
280
273
 
6
23
16
9
2
1
Douglas-fir Poles & Piles
DFL
1-5
787
780
773
766
759
Western Redcedar Poles
RCL
1-5
1576
1569
1562
1555
1548
 
6
1104
1097
1090
1083
1076
Chipwood(6)
CHW
1-5
13
12
11
10
9
 
6
3
2
1
1
1
Small Logs(6)
SML
6
25
24
23
22
21
RC Shake & Shingle Blocks(7)
RCS
1-6
289
282
275
268
261
Posts(8)
LPP
1-6
0.35
0.35
0.35
0.35
0.35
DF Christmas Trees(9)
DFX
1-6
0.25
0.25
0.25
0.25
0.25
Other Christmas Trees(9)
TFX
1-6
0.50
0.50
0.50
0.50
0.50))
Douglas-fir(2)
DF
1
$318
$311
$304
$297
$290
 
2
420
413
406
399
392
 
3
410
403
396
389
382
 
4
456
449
442
435
428
 
5
423
416
409
402
395
 
6
273
266
259
252
245
Western Hemlock and
Other Conifer(3)
WH
1
240
233
226
219
212
 
2
281
274
267
260
253
 
3
262
255
248
241
234
 
4
286
279
272
265
258
 
5
282
275
268
261
254
 
6
236
229
222
215
208
Western Redcedar(4)
RC
1-5
1111
1104
1097
1090
1083
 
6
935
928
921
914
907
Ponderosa Pine(5)
PP
1-6
193
186
179
172
165
Red Alder
RA
1-5
477
470
463
456
449
Black Cottonwood
BC
1-5
80
73
66
59
52
Other Hardwood
OH
1-5
282
275
268
261
254
 
6
23
16
9
2
1
Douglas-fir Poles & Piles
DFL
1-5
711
704
697
690
683
Western Redcedar Poles
RCL
1-5
1545
1538
1531
1524
1517
 
6
1228
1221
1214
1207
1200
Chipwood(6)
CHW
1-5
13
12
11
10
9
 
6
3
2
1
1
1
Small Logs(6)
SML
6
23
22
21
20
19
RC Shake & Shingle Blocks(7)
RCS
1-6
289
282
275
268
261
Posts(8)
LPP
1-6
0.35
0.35
0.35
0.35
0.35
DF Christmas Trees(9)
DFX
1-6
0.25
0.25
0.25
0.25
0.25
Other Christmas Trees(9)
TFX
1-6
0.50
0.50
0.50
0.50
0.50
(1)
Log scale conversions Western and Eastern Washington. See conversion methods WAC 458-40-680.
(2)
Includes Western Larch.
(3)
Includes all Hemlock, Spruce and true Fir species, Lodgepole Pine in SVA 6, or any other conifer not listed on this page.
(4)
Includes Alaska-Cedar.
(5)
Includes Western White Pine in SVA 6, and all Pines in SVA 1-5.
(6)
Stumpage value per ton.
(7)
Stumpage value per cord.
(8)
Includes Lodgepole posts and other posts, Stumpage Value per 8 lineal feet or portion thereof.
(9)
Stumpage Value per lineal foot.
(3) Harvest value adjustments. The stumpage values in subsection (2) of this rule for the designated stumpage value areas are adjusted for various logging and harvest conditions, subject to the following:
(a) No harvest adjustment is allowed for special forest products, chipwood, or small logs.
(b) Conifer and hardwood stumpage value rates cannot be adjusted below one dollar per MBF.
(c) Except for the timber yarded by helicopter, a single logging condition adjustment applies to the entire harvest unit. The taxpayer must use the logging condition adjustment class that applies to a majority (more than 50%) of the acreage in that harvest unit. If the harvest unit is reported over more than one quarter, all quarterly returns for that harvest unit must report the same logging condition adjustment. The helicopter adjustment applies only to the timber volume from the harvest unit that is yarded from stump to landing by helicopter.
(d) The volume per acre adjustment is a single adjustment class for all quarterly returns reporting a harvest unit. A harvest unit is established by the harvester prior to harvesting. The volume per acre is determined by taking the volume logged from the unit excluding the volume reported as chipwood or small logs and dividing by the total acres logged. Total acres logged does not include leave tree areas (RMZ, UMZ, forested wetlands, etc.,) over 2 acres in size.
(e) A domestic market adjustment applies to timber which meet the following criteria:
(i) Public timber - Harvest of timber not sold by a competitive bidding process that is prohibited under the authority of state or federal law from foreign export may be eligible for the domestic market adjustment. The adjustment may be applied only to those species of timber that must be processed domestically. According to type of sale, the adjustment may be applied to the following species:
Federal Timber Sales: All species except Alaska-cedar. (Stat. Ref. - 36 C.F.R. 223.10)
State, and Other Nonfederal, Public Timber Sales: Western Redcedar only. (Stat. Ref. - 50 U.S.C. appendix 2406.1)
(ii) Private timber - Harvest of private timber that is legally restricted from foreign export, under the authority of The Forest Resources Conservation and Shortage Relief Act (Public Law 101-382), (16 U.S.C. Sec. 620 et seq.); the Export Administration Act of 1979 (50 U.S.C. App. 2406(i)); a Cooperative Sustained Yield Unit Agreement made pursuant to the act of March 29, 1944 (16 U.S.C. Sec. 583-583i); or Washington Administrative Code (WAC 240-15-015(2)) is also eligible for the Domestic Market Adjustment.
The following harvest adjustment tables apply from ((July)) January 1 through ((December 31, 2016)) June 30, 2017:
TABLE 9—Harvest Adjustment Table
Stumpage Value Areas 1, 2, 3, 4, and 5
((July)) January 1 through ((December 31, 2016)) June 30, 2017
Type of
Adjustment
Definition
Dollar Adjustment Per
Thousand Board Feet
Net Scribner Scale
I. Volume per acre
Class 1
 
Harvest of 30 thousand board feet or more per acre.
$0.00
Class 2
 
Harvest of 10 thousand board feet to but not including 30 thousand board feet per acre.
-$15.00
Class 3
 
Harvest of less than 10 thousand board feet per acre.
-$35.00
II. Logging conditions
Class 1
 
Ground based logging a majority of the unit using tracked or wheeled vehicles or draft animals.
$0.00
Class 2
 
Cable logging a majority of the unit using an overhead system of winch driven cables.
-$85.00
Class 3
 
Applies to logs yarded from stump to landing by helicopter. This does not apply to special forest products.
-$145.00
III. Remote island adjustment:
 
 
For timber harvested from a remote island
-$50.00
IV. Thinning
Class 1
 
A limited removal of timber described in WAC 458-40-610 (28)
-$100.00
TABLE 10—Harvest Adjustment Table
Stumpage Value Area 6
((July)) January 1 through ((December 31, 2016)) June 30, 2017
Type of
Adjustment
Definition
Dollar Adjustment Per
Thousand Board Feet
Net Scribner Scale
I. Volume per acre
Class 1
 
Harvest of more than 8 thousand board feet per acre.
$0.00
Class 2
 
Harvest of 8 thousand board feet per acre and less.
-$8.00
II. Logging conditions
Class 1
 
The majority of the harvest unit has less than 40% slope. No significant rock outcrops or swamp barriers.
$0.00
Class 2
 
The majority of the harvest unit has slopes between 40% and 60%. Some rock outcrops or swamp barriers.
-$50.00
Class 3
 
The majority of the harvest unit has rough, broken ground with slopes over 60%. Numerous rock outcrops and bluffs.
-$75.00
Class 4
 
Applies to logs yarded from stump to landing by helicopter. This does not apply to special forest products.
-$145.00
Note:
A Class 2 adjustment may be used for slopes less than 40% when cable logging is required by a duly promulgated forest practice regulation. Written documentation of this requirement must be provided by the taxpayer to the department of revenue.
III. Remote island adjustment:
 
 
For timber harvested from a remote island
-$50.00
TABLE 11—Domestic Market Adjustment
Class
 
Area Adjustment Applies
Dollar Adjustment Per Thousand Board Feet Net Scribner Scale
 
 
SVAs 1 through 5 only:
$0.00
Note:
This adjustment only applies to published MBF sawlog values.
(4) Damaged timber. Timber harvesters planning to remove timber from areas having damaged timber may apply to the department of revenue for an adjustment in stumpage values. The application must contain a map with the legal descriptions of the area, an accurate estimate of the volume of damaged timber to be removed, a description of the damage sustained by the timber with an evaluation of the extent to which the stumpage values have been materially reduced from the values shown in the applicable tables, and a list of estimated additional costs to be incurred resulting from the removal of the damaged timber. The application must be received and approved by the department of revenue before the harvest commences. Upon receipt of an application, the department of revenue will determine the amount of adjustment to be applied against the stumpage values. Timber that has been damaged due to sudden and unforeseen causes may qualify.
(a) Sudden and unforeseen causes of damage that qualify for consideration of an adjustment include:
(i) Causes listed in RCW 84.33.091; fire, blow down, ice storm, flood.
(ii) Others not listed; volcanic activity, earthquake.
(b) Causes that do not qualify for adjustment include:
(i) Animal damage, root rot, mistletoe, prior logging, insect damage, normal decay from fungi, and pathogen caused diseases; and
(ii) Any damage that can be accounted for in the accepted normal scaling rules through volume or grade reductions.
(c) The department of revenue will not grant adjustments for applications involving timber that has already been harvested but will consider any remaining undisturbed damaged timber scheduled for removal if it is properly identified.
(d) The department of revenue will notify the harvester in writing of approval or denial. Instructions will be included for taking any adjustment amounts approved.
(5) Forest-derived biomass, has a $0/ton stumpage value.